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Applying for an FHA loan to fulfill your dream of homeownership? Well, you are not alone. As the loan is guaranteed by the Federal Housing Administration, it has lenient requirements. And so, low to medium income group buyers can meet the requirements easily. But before you apply for the loan, you would like to know your home affordability.
How to know how much home you can afford with an FHA loan? Well, an FHA loan calculator Texas can help you with this. It is an online tool that provides you the answer based on some inputs.
Do you have some questions about the loan that you want to resolve before using this calculator? Here, we have listed a few for you –
- How much FHA loan do I qualify for?
The FHA loan amount that you can qualify for depends on several things. It includes your credit score, income, down payments, current debts, and different other factors. The higher your down payment and credit score, the bigger the FHA loan you can qualify for. Besides, you can ensure the best interest rate. Use an FHA loan calculator and know how much FHA loan you qualify for based on your current interest rates, as well as down payment.
- What are FHA interest rates?
Generally, FHA interest rates tend to be a little below market average. But mortgage insurance has to be factored in. FYHA loans come with annual mortgage insurance equal to 0.85% of the loan amount. If your current mortgage rates were 3.5%, you would actually be paying 4.35% annually. Your own FHA loan rate is based on your application. Things like a higher credit score, bigger down payment, and sizeable income can all net you a lower interest rate. Moreover, rates vary by lender. You need to shop for lenders and compare the rates to find your lowest rate.
- How much are FHA closing costs?
Closing costs for FHA loans are similar to traditional closing costs – about 3 to 5 percent of the loan amount. But FHA mortgage insurance also has to be factored in. FHA upfront mortgage insurance, generally equal to 1.75% of your loan amount, is due at the time of closing. If you want, you can roll that insurance fee into your loan. However, you can’t finance other closing costs using FHA.
- Is it possible to buy a house with FHA no money down?
There are no guidelines following which one can get approval for a FHA loan with no down payment. The lowest down payment requires for an FHA loan approval is 3.5%. However, you have the option to cover the whole FHA down payment using gift funds. And home buyers who need flexible credit or income requirements can opt for zero-down home loan options outside FHA. USDA loan offers zero-down in qualified areas, while VA mortgages allow no down payment for qualified military members and veterans.
- What are FHA loan income limits?
There are no income limits on FHA loans. It means you can qualify for an FHA mortgage on any salary – unlike a USDA loan that caps borrower income around $86,000.
So, now use an online FHA calculator to know your home affordability, and then apply for the loan today!